Record U.S. Natural-Gas Output Likely To Continue In 2011

By

Matt Day

Updated March 2, 2011 12:01 a.m. ET

NEW YORK—The U.S. is inundated in natural gas, and the glut may not ease any time soon.

Domestic production last year hit its highest level in almost 40 years, and 2011 will likely see another year of strong production. That means another year of subdued electricity prices and pressure on drillers' bottom lines as well as a powerful incentive for companies and other consumers to switch to the heating fuel.